SB 2091: Viatical Settlements Act
A Surety bond in the amount of $125,000 must be posted in order to insurance financial responsibility for licensed viatical settlement providers. This bond must be issued by an insurer authorized to issue surety bonds in that state. If the provider has proof that financial instruments have been filed in one or more states where the provider is licensed this can be accepted in lieu of a bond or other security. This stands as long as the instruments comply with the new law’s provisions. There are other acceptable forms of security such as cash, certificates of deposit, securities or a letter of credit. This law will be effective on July 1st, 2010.